India's Tata Motors, owner of luxury carmaker Jaguar Land Rover, said yesterday that rare-earth export curbs imposed by China have not caused it to press any “panic buttons” yet, and that its electric vehicle launches were on track.
China’s curbs on rare-earth exports have disrupted the global auto industry, with companies warning of a severe supply crunch. Rare-earth magnets are used in everything from windshield-wiper motors to anti-lock braking sensors in vehicles.
“Currently, I think there’s no panic because we believe the supplies are coming through. There’s no production curtailment. Nothing is being planned at this point in time,” CFO PB Balaji said at an event in Mumbai.
Tata Motors’ electric vehicle launch plans are on track, but may be reviewed if there is significant deterioration of rare earth supplies, CFO Balaji said.
Alternate sources for magnets, including alternate technologies, are being looked into, he said.
Maruti Suzuki, India’s top carmaker, cut near-term production targets for its electric vehicle e-Vitara by two-thirds because of rare-earths shortages, Reuters reported earlier this month.
Shailesh Chandra, managing director of Tata Motors Passenger Vehicles and its EV subsidiary, said the company was looking at how to reduce the composition of rare earth magnets in its cars and how to completely eliminate them over the longer term.
China controls more than 90 per cent of the global processing capacity for the magnets, which are used for automobiles, clean energy and home appliances. It enacted restrictions in April that require companies to obtain import permits from Beijing, as part of its retaliation against hefty US tariffs.
Tata Motors CFO Balaji also said that Jaguar Land Rover will take price hikes “in a calibrated manner” to counter the impact of US tariffs, but is not planning any manufacturing site in the US.
The Range Rover maker had lowered the forecast for its fiscal 2026 earnings before interest and taxes margin to 5pc-7pc last week from 10pc earlier, amid uncertainty in the global auto industry.
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